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The Kudlow Report

News/Business. Larry Kudlow. Larry Kudlow provides his unique perspective on business, politics and investing. New.

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California 9, Fbi 9, Us 8, Boehner 8, Cia 5, Texas 4, Grover 4, Obama 3, Ho 3, Benghazi 3, America 3, Peter King 3, David Petraeus 3, Obama Care 3, Larry Kudlow 3, Kristol 3, Diana 3, Florida 2, Washington 2, John Hofmeister 2,
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  CNBC    The Kudlow Report    News/Business. Larry Kudlow. Larry Kudlow provides his  
   unique perspective on business, politics and investing. New.  

    November 12, 2012
    7:00 - 8:00pm EST  

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i'm jim cramer. see you tomorrow! i am larry kudlow. a blockbuster prediction. the u.s. set to take over as the top world oil producer in the next decade. will the epa block this tremendous economic and political breakthrough? then if president obama and john boehner can rise above and get a deal done for the fiscal cliff, there is a lot of money that could be made in stocks. and why shouldn't top military and business leaders maintain an honorable code of conduct? isn't it better to have a moral center? general david petraeus is a great man. but he made, unfortunately, a great mistake. first up, are we on the verge for american oil revolution?
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according to the international energy agency, the u.s. will overtake saudi arabia as the world's largest oil producer that before the year 2020. but -- don't get your hopes completely up as the epa could block this fantastic market-driven advance. nobody better to talk about it is john hofmeister. john, it is a pleasure to have you here. now, is it credible, first of all the report, we will overtake the saudis? >> report is credible. the iea is smart, good analysts. we have the reserves, no question we have the reserves. in the ground today. number two, we have the technology to get the reserves out of the ground. and number three, we have the money to pay for it. >> right. >> capital exists. >> will the capital be spent? i want to go back. i want to backtrack because i know you are so good at this. with you l the capital be -- so far it has been invested. is that fair? >> it has been invested on private lands, private property
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owners giving up mineral rights under state permits but something is about to change. that everybody needs to be mindful of. we are about to arrest all of this oil field development when the epa completes their long awaited three-year stud, started at 2010. and it is due in january. to essentially remand the states from taking the variable approach they take on fracking and hydraulic to put a consistent epa knows best policy in place. >> despite the fact we have known this regulation was coming but keep postponing and postponing it. what you are saying is they decided to postpone it after the election, number one and number two, the epa knows better than the marketplace. >> the epa knows better than the states, where the oil exists. >> and where there is regular zblags and knows better than the marketplace. free market capitalism in the energy marketplace, larry, has died a long time ago.
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and it is going to go -- the nails are going into the coffin. one more time. and as if it is not already nailed shut as it is. >> do you think president obama -- all right. i am giving him the benefit of all the doubts, just got re-elected and i say to him fine. do you think president obama will let his epa do what you are describing? do you think president obama will try to throttle the epa back? >> look, for the first three years of the obama administration, we saw every negative behavior towards the oil and gas industry that was possible. suddenly in january 2012, we had this suddenly announced all in, all the above energy strategy which didn't mark with all the actions of the prior three years. my guess is my prediction is that we go back to the original obama administration which is negative towards fossil energy, coal will be diminishing in effect over the next four years. >> they are going to take coal out. epa will take coal out. that's what they want. >> exactly. they want it gone. there will be a demonstration
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this sunday at the white house against the keystone pipeline. they will march around the white house and pull out thousands of people and it will be a sierra club and jim hanson. >> and prolong the keystone study forever. >> right. >> so we never get that pipe line a no-brainer of a decision. >> two years ago, three years ago. >> yes. there's 160,000 miles to pipeline. we are fighting over 1700 mile pipe line we will beat the saudis. >> we can beat -- >> given half after chance. even -- moderately free market forces. we can outproduce the saudis. >> absolutely with one other -- we need the people. it has been so trashed by so many for so long that young brad watts don't want to go into the fossil industry and take the stem education requirements, the, you know, science, technology, engineering and the math. and so we have a dearth of engineers. 100,000 open michael jackson the
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energy industry today because a lot of people just we don't to go work there. they don't have the skills. we could do it. we could do it. >> john hofmeister, knees we can do it. all right. another big story tonight related to this. the personal scandal bringing down general david petraeus at the cia. and similar scandals taking down ceos in the private sector, too. all leads to one conclusion for me personally. honor and personal responsibility do matter. congressman peter king is going to join me on this important topic a little later in the show. now, next up, will president obama's second term take the country over a regulatory cliff? national review online says today regulatory reform is more urgent now than ever. we are joined by robert locksly,
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president of the california business roundtable. hello to both you. ian a you heard mr. hofmeister knows a thing or two about this. we can knock the saudis off and change world politics and changes our balance of trade. will the epa block it, diana? >> well, i don't know but maybe we should listen to what president obama was saying last year. he was brag being the oil and gas development we have in the united states. we got to remind him about that when the new epa regulations come out. so we -- we want to make sure he doesn't bring out those old ozone regulations that he shell of ad couple of years ago because he said they would damage the economy. our economy is growing slower now than it was then. we are really regulating to disaster. >> epa in 2010, diana? $23 billion of regulatory costs for the year 2010. >> that's what epa says. it is really probably a lot more than that. i mean, thee regulations, the
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mercury, the car ever carbon, ozone, each cost $100 billion each. >> all right. >> they don't have to justify them with benefits because it is maximum achievable control technology. in other words, they want to get as much as they can out of the air and don't have to justify the benefits. >> all right. robert, let me bring you in. you got your own epa in california. and you got your own cap and trade in california. and you got your own tax hikes in california. i guess everybody is going to move to texas. is that true? leave town and go to texas? >> we are certainly going to do everything we can to prevent that. we are hoping to work with the governor and he will do the same. >> you don't really believe that, do you? i mean, governor brown wanted the tax hikes. governor brown is one of the big greenies. he's -- exactly the kind of epa greenie diana first got roth as describing. >> well, you know, we have had a political earthquake here in california after last week. we now have a two-thirds supermajority in the assembly and senate. now for the business community in order for our economy to grow and create jobs in investment,
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it is really going to be in his decisi decision make what will happen with the legislature to do that. >> you are not too optimistic. democratic legislature and democratic state which is already very liberal, left, right? how -- i don't see a way out for you, sir? >> larry, that's what our jobs are. we are going on move california forward. but we are facing our own incredible hurdle. the government unions are going to be dominating the legislature as they have in the past. that puts us back on the defensive. we were hoping to be on the offensive to change some of these policies. but the governor has indicated so far this week he intends to restrain some of the actions of the legislature to stop new spending and talked about the restraint of joseph but the business community needs the wisdom of solomon from this governor in order to be able to grow jobs. >> all right. diana -- >> also the 33% renewable standard in california has by 2020 33% of their electricity has to come from wind, bio fuels and solar. imagine if that had been true in new york and new jersey.
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hurricane sandy would have knocked all of those out. right now those states are asking for gasoline. not solar panels or windmills. >> diana, just one last regulatory obstacle while we are on the subject. obama care. obama care. now, i know -- >> that's a major regulatory obstacle because if you move from 49 to 59 workers and don't have the right kind of health insurance you have to pay $2,000 per worker per year. the only way you can get out of it is by making the full-time workers part time and as a result they are going to be all these additional part-time workers for americans who want full-time jobs. it is absolutely outrage house is this why all these big companies, i mean, not just fast food companies. it is industrial companies and it is media companies and it is -- is this why they are already laying off workers? >> there are -- that's one reason. larger industrial companies that provide health insurance are going to find there are winners in ending their own health insurance and dumping their work others the exchange and paying the penalty.
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but it is -- low wage jobs. entry-level jobs. low-skill jobs. the kind that people need to get their foot on the first rung of the career ladder. those are really being harmed by obama care. >> so even if we get through the fiscal cliff, even if we get through the fiscal cliff, we still have ourselves a regulatory cliff. you see in california, diana is talking about it nationwide. that's a huge problem. aren't regulations kind of like taxes? >> unquestionably. and we do have a regulatory cliff here. starting this week, we start our first in the world climate change regulations to implement a cap and trade regulation hear. that is going to cost business in 2013 $1 billion. by 2015 when it regulates fuels in california, it is going to cost us at least $10 billion. that's money coming to the state in revenues that will be balanced on the backs of businesses and consumers. and larry, then we have green kemp zpri obama care.
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we could go down the list in every business sector of what we are dealing with over the next one year to ten year period. >> all right. >> it is incredible we will leave it there. not too encouraging. we will see what happens. many thanks. here's the deal. from wall street, pessimism is still reigning. if washington avoids the fiscal cliff, if, it sure looks like this could be a big-time buy opportunity. think about it. we are about to ask the money manager if he is thinking the same thing. later, president obama's going to make a public campaign to build support for his fiscal plan but what are those plans exactly? what is this public campaign? what's going on inside of his head. and don't forget, folks, i know sometimes it is discouraging. free market capital its silver medal the best path to prosperity ask i believe that it will prevail. just ask those oil drillers in north dakota. they have it right. "the kudlow report" is coming
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welcome back, everybody. well, denmark is scrapping the world's first so-called fat tax. that's after a year because it didn't change anyone's eating benefits and had a negative
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effect on the economy. score one for freedom of choice. whether it is good or bad, freedom reigns. fiscal cliff remains. all can turn out well. maybe investors are missing a huge buying opportunity. think of it. here now is head. welcome. let me go through this. i don't believe for one minute that all the tax cuts will be permitted to expire. i don't believe it. i think it is just not going to happen. let's put aside the issue of which one and so forth. is f there is no fiscal cliff is the stock market undervalued? >> incredibly undervalued. it should be based on where interest rates are, ten-year treasury. it should be overvalued. remember, larry, stocks have not been overvalued since 2001. we have had about 12 years where stocks have been very cheap because the lack of clarity and lack of direction. lack of understanding. so stocks when you evaluate them, you know this very well,
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you evaluate them based on earnings expectations, where interest rates are, the price earnings multiple should be significantly higher on stocks today. they are very cheap. we just need clarity. >> let me give you some clarity maybe. suppose we now run into a position where the top rates, top tax rates, are raised. in other words, the president's initial position, everybody up to $250,000 is fine. tax cuts extended. in the top brackets, this is my question to you, capital gains tax rate goes up from 15 to 20. from 20 to 24% with obama care. the dividend of tax rate goes up. lord knows it could go from 15 to 40. and it may go then another 4% from obama care. between don't know that. those raise the cost of capital and lower the after-tax investment return. all right. i want to be realistic here. rest of the stuff may be extended. how's your scenario affected if cap gains and dividends go up?
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>> well, earnings expectations could pull back a little bit. remember, the stock market is moved by institutions. as much as we want to think it is individuals, it isn't. 94% of all the volume on the stock exchange are from institutional investors that don't care too much about the individual taxes. they care about earnings. >> i think it is a macro economic effect. it doesn't matter. you raised the cost of capital and lower the investment return for all of the capital in this country and that's going to have an effect. pension funds notwithstanding. i got a champ evening you on that. >> even though i think the cliff will turn out to be a bogus issue. >> i believe that we are -- >> never seen a time when cap gains went up substantially and something bad didn't happen to stocks. >> i believe earnings expectations will come down as a result of that stock prices might not rise as much. but remember, it is not going to be as big of a deal financially to each individual as you might think. the market has changed over the last ten years and mainly institutional invest wrors and what they are looking for is clarity and they are looking to those technical charts. i agree it will be a day -- hurt the economy and i'm not in favor
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of it at all. >> favorite sectors? >> i love utilities. buy it on dips and small cap value will outperform -- >> small cap values. that's a higher risk, very optimistic economic growth scenario. >> i don't know how much higher small cap growth would certainly be but small value are undervalued, i think you are bogey to see a lot of buyouts before the end of year. small cap value will outperform. >> thank you. we appreciate it. now, president obama is going to rally support for a fiscal fix. so far we have no idea what's inside of his head and what he will propose. let's hope the president is offering an olive branch unlike the past. >> let me just make this point. we are not campaigning. the election is over. >> i'm reminded of that every day. customer erin swenson bought from us online today.
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president obama is set to host congressional leaders at the white house for a bipartisan fiscal cliff talks on friday. he's going to be meeting with labor and business loaders throughout the week. so will republicans and democrats be able to rise above their partisan differences and reach a fiscal cliff deal? let's get right to our special guest, tennessee republican senator bob co. let me read you a quote from bill kristol whose father is a supply side mentor of mine.
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quote, it won't kill the country if we raise taxes a little bit on millionaires. end quote. what's your take on kristol's quote? >> well, i do think we can look at some pro-growth reforms that do away with loopholes and credits and all of those kind of things we have been talking about for some time. we can do that in a way that sometime late economic growth. that is the way we need to focus and not on race. speaker boehner was out last week and -- talking about his willingness to do that. hope reply the president will step away from the rate issue and focus on this olive branch i think boehner rightfully has laid out. so -- i do hope we will solve this problem. >> okay. let me just pursue this a little bit. i'm in a challenging mode. okay. you know me. i'm a supply cider. i'm for a 15% plat tax rate. no deductions. we are not going to get that, at lowes not immediately. let me ask you, would you or other republicans who are fiscal
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conservatives, as you are, would you buy into a higher rate for millionaires, in other words, what kristol is saying, i think, i have not talked to him but i think he is saying $250,000, too low. maybe $500,000 bet person would you buy into it if it were millionaires tax? rate hike? talking rate hike. >> yes. one of the things i don't want to do is -- negotiate on air. here's what i think is missing in this discussion. you know, the fact is everybody is focused on the fiscal cliff. but the fact is that they are conflating fiscal cliff with fiscal reform and really knowing that we move order a path towards solvency. i heard you talking to an investor just right before i came on and -- i know he was talking about the cliff and all of those things. but i think it is very important also to really focus on this fiscal reform issue. if we skate past the fiscal cliff, we still have the solvency issue the deal with. what republicans said is look, we are willing to put revenues
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on the table and i don't want to get into splitting hairs on the program and negotiating in public and -- by the way, two most important people in these negotiations are the president and speaker boehner. those are the two that can actually get a result by year end. i think what republicans have said is, look, we don't mind looking at revenues but we want to make sure we have actually solved the problem, we dealt with entitlements, especially we dealt with medicare ask those are the ying and the yang of the deal and are very important as far as our country moving ahead good not now. >> no, no, no. larry -- >> wall street -- wall street wants you all to just get us through this $500 billion tax hike. then you are right about entitlement reform and medicare and social security. isn't that -- isn't that next year? there are -- boehner says down payment now. buy the boehner down payment zbh i don't like the down payment. i would be sorely disappointed if we missed this opportunity. i think somebody was telling me today the budget act of 1990 took 12 days to put in place.
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we know what all the issues are. i hope we won't be lacking courage just to go ahead and deal with big pieces of this. so -- i am in a different place than you on this. i think we ought to deal a -- in a big way with the fiscal reform. >> you want to grant design. that's very -- interesting point of view. >> doesn't have to be grand. we play to take two bites at it, debt ceiling coming up which i think, by the way, debt ceiling is the more important day personally than the fiscal cliff issue because we are not fiscal cliff is not going to happen. okay. simply is not going to happen. so -- to me, the focus ought to be on solvency and if we can deal with that and take a big step out of that, big step towards solving that, during this december, i agree with you. i think the markets are going to take off and i think that -- from an outside perspective, things are undervalued if we do that. >> thanks, senator corker, terrific stuff. in a health care summit two
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years ago when senator mccain challenged president obama on policy, obama offered this in response. >> let me just make this point, john. because we are not campaigning anymore. the election is over. >> all right. but the question is today is it the new obama? some worry about his fiscal and economic legacy. the legacy question. let's bring in democratic vat gist steve mcmahon and grover norquist. is president obama worried about his legacy? will that make him more amenable to make a deal? >> well, i think every president thinks about their legacy. especially any president who is elected for a second term. they are looking at never again running for office again. and i think the reason you are seeing a president bring everybody in business leaders, labor leaders, and members of the opposition party is because he understands the significance of the moment and he understands the urgency of the need. and he wants to bring -- wants
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to bring everybody together around something where everybody gives a little bit but the country gets something significant. frankly, something the voters are asking for. which is a government that finally works. >> all right. agreed. i think voters would like a government that finally works and grow it is economy. you probably saw all of the stories today in "the new york times" and "wall street journal." the president is going to take this show on the road. what i'm trying to figure sought this. what is the show he taking on the road? what does obama want? what's inside his head? what -- where is this going on play out? >> well, what you are seeing is somebody who doesn't think the campaign is over. he's running a campaign and you saw his speech. press conference didn't take any questions and he had -- you know, supporters behind him and campaign rally. held at the white house at public expense as his conversation about how he was drawing a line in the sand and was insisting on higher taxes on people who work on saturdays and
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save and invest and how this would help the economy. people who hope he's going to help you rein nonspending he wants to play to his legacy. his legacy is dramatically expanding the size of government. larry, you may not see that as a good legacy. but he does. he's happy that he made the government bigger and made it so much bigger he's now turned to the american people and the republicans and said, you have to raise taxes to pay important my big government or i'm going to let everything blow up. and the republican answer, as it was in 2011, is the problem mr. president, is you are overspending. not that the people are undertaxed. >> i don't want the republicans to go wobbly on me. that's the thing. but steve mcmahon, you heard grover's point of view. i happen to agree. i believe the president. now maybe he will prove me wrong. but i think he would rather have a larger government than a smaller government. and, therefore, i think he would rather have higher taxes than lower taxes.
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where do i have it wrong? >> well, i think he certain wloy rather have a government where senior citizens have social security and medicare is protected and medicaid provides a safety net. and i think he is proud of his achievement on health care reform. i also think that he's come forward and said i will take $3 of spending cuts for every dollar in additional receive knew and campaign order the idea that we have to get -- to -- better balance and the way to get to a better balance on the budge set by asking people that make a little bit more and have done better in this economy to do a little bit more and give a little bit more. and he's not suggesting that you can't get there -- in only one way. he is saying he's open to ideas and i think that's what the conversation is about. congress is there to do a job and it is not just to say no to the president. it is to actually get something done. the president reached out. >> i think that's what mr. boehner has been saying to his own conference. but i -- grover, i would just like to hear you on the policy issue. john boehner is saying that we can limit heat with -- would be willing to limit tax loopholes
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and tax deductions on upper income taxpayers as long the marginal tax rates stay the same. so there is a receive knew increase in will. grover, can you support that? can americans for tax reform support the, quote, revenue increase from loophole closures as boehner sing suggesting? >> well, actually if you read boehner's speech, that's not what he said. he said he's for receive knew increases that employee from tax reform. economic growth is the path he wants on move forward on. that's what he said in the 2011 budget control and what he is saying now. he did not agree to a static model tax increase. if you gave up deductions and credit it is way the democrats would structure them is they would faze them out so it would be a marginal tax rate increase on higher income people. and it wouldn't be just eliminating deductions and credits. we need economic growth. if you grow at 2% a year versus
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4% a year, 4% a year growth over a decade nets $5 trillion to the government. there is no tax increase anybody is talking about that would raise $5 trillion growth will do that. and that means a lower capital gains tax, lower corporate rate, and a lower individual rate. all things the president -- on the other side -- >> but grover -- >> let me ask real steve quick. >> if i remember the 1990s when the tax rates were what the president would like them to be today there was growth. and people did pretty well. they made plenty of money and in fact, the budget was balanced and there was a surplus when george bush took off. there was a period in the '90s when the very policies you say didn't work, worked pretty well for everybody. >> we don't know -- >> people watching this program. >> lot of other things going on. i appreciate the point. clinton cut the capital gains tax and he also cut other savings taxes. they also cut spending. he also was -- of a technology boom. but i --
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>> none of that happened until the republicans took control of congress. >> that's true. i want to say, steve, though, in all honesty, i haven't said a bad word about the president since his re-election. i want to see when he comes up with and i admire speaker boehner for trying to come up with a compromise and making a concession. gentlemen, thank you. the ceo of papa john's to the growing list of executive concerned about the cost of obama care. he says obama care will cost the company $5 million to $8 million a year and that the franchise owners might have to cut workers' hours because they can't apoured the insurance plans. sex, spies and scandal. wave of speculation in washington over the timing and the nature of cia chief david petraeus' sudden resignation. chairman of the house homeland security committee, pete king, has answers for us up next. americans are always ready to work hard for a better future.
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welcome back to "the kudlow report." a pair of union stories in the news. a weekend strike would force it
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to close three plants. they are confiding with several unions since it filed chapter 11 bankruptcy back in january. ceo says complete shutdown of the company is a possibility. and a superstorm sandy hit the new york area last week, now a florida utility says that the long island power authority sent letters to florida crews and asking them to temporarily join the union before they could help out. and that may have delayed their arrival. the union says no one was turned away if they refused to join. all right. you her all the pundits saying democrats are killing the republican party in the swing states. now senator ted cruise has a real shocker for us. he says immigration trends could very easily turn the reddest of red states blue. we are talking texas, of all places. can you believe that? we will have much more about this republican bungle of immigration when we talk to christopher at 7:50 this
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evening. new questions tonight following the sudden resignation of cia director david petraeus. over an extramarital affair. chair and senate intelligence committee saying that she will seek testimony from petraeus about the september attack on the consult in benghazi, libya. joining us now is the chair of the house homeland security committee, peter king. peter, chairman king. as always, let -- let me just ask you, this is the latest coming out of the fbi. you probably have seen this. and says here, the fbi withheld findings about petraeus' affair from the white house and congressional leaders because the agency considered them the result of the criminal investigation that never reached the threshold of an intelligence probe. that's what they are saying. that's what the justice is saying, justice department. do you buy that? >> absolutely not. absolutely ridiculous. put congress aside for one moment. the president of the united states is entitled to know a key member of his foreign policy
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team, head of the cia, general petraeus is more of a player than any other cia director i'm aware of. he was sent around the world negotiating agreement was countries because of his vast military experience. thought you have a key player be under a cloud, ethical cloud, possibly subject to blackmail and intimidation. the -- attorney general and the fbi director certainly attorney general had the absolute obligation to tell that to the president and let him decide what he wanted to do. to me, that's -- this is not -- just a matter of what is criminal or not. the pact is that -- just -- alone, there is an investigation, president has to be told that. because otherwise, it can -- totally tie up his foreign policy and could cause tremendous embarrass many internationally. again, decembertition president is to make. not the attorney general. >> why didn't he? i mean, there's a bunch of questions like this. why wasn't the president told about this investigation, cia recollect oo oo oo oor -- detec
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petraeus. why wasn't america told about the iranian drone attack? the ongoing inquiries into what happened in benghazi was actually the cia, for example, saying two different things. chairman, it sounds just all of this pre-election stuff that's now coming out. everything just sounds like a coverup to me. >> yes. certainly raises real questions. mine, i thought benghazi, explanations, excuses, administration were given from the start didn't make sense, didn't add up. whole fbi investigation and the way that they are describing it doesn't make sense. i mean, how -- first of all, even -- just harassing e-mails turned into an fbi investigation, we have cyber warfare going on with iran and we are getting excited over a woman harassing another one with an e-mail. i'm not aware of that going to an fbi investigation report. secondly the moment that the fbi and the fbi director found out or realized general petraeus was within the scope of the investigation, should have gone
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to the attorney general which apparently they did. but at the earlier they should are v done that and president should have been advised. otherwise to me the president was poorly served unless there is a mindset in the administration that, you know, they just make believe reality isn't there until after the election. we really believe this was a four-month investigation involving the recollector of the sigh eye and did not come to fruition until election night. >> that's the hard part. >> that was absolutely impossible to believe. >> i agree. it is just not a credible position. but chairman, before i lose you, look, petraeus, great american. great man. but he made a great mistake, peter. he made a great mistake. and i think guys like that have to have honor and have to have personal morality. they have to set an example. i mean, that's also part of this story, is it not. >> it is. and i -- again, i urged general petraeus to run for president in 2012. great regard for him. it is a terrible sadness and tragedy. it is a personal tragedy.
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my concern here is not that the investigation went ahead but the fact that -- the president was never told about it. congress was never told about it. i mean, the chairman and ranking member of the intelligence committees in both houses are supposed to be told about this. this seems like an end run by the fbi or the administration. and keeping the -- american people, something under control until after the election. if that's the case if they thought general petraeus could have been a security risk and this was hidden until after the election, that's a dereliction of the president's role as commander in chief or if he was than told, whoever didn't tell him, attorney general, fbi director, failed in their job. >> sounds like either the -- director of all the intelligence or the fbi, maybe the cia, but it seems like they were wrong also. and that they were dare electricity derelict in their duties. >> i'm on the intelligence committee and holding a hearing thursday. we have to -- i believe we have a subsequent hearing he will be there and will have the head of
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the national national counter dass terrorism and general clapper there. a major investigation and hearing. i know that the fbi is coming in wednesday to try to explain their conduct in this matter. >> all right. chairman peter king, we appreciate your time, sir. thank you very much. thanks for helping us out. folks, we honor our troops this veterans day. our men and women in uniform self-lessly put their lives on the line every day and so why aren't companies hiring them when they come home? we found someone who actually is and that's up next. two years ago, the people of bp made a commitment to the gulf.
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bp has paid over twenty-three billion dollars to help those affected and to cover cleanup costs. today, the beaches and gulf are open, and many areas are reporting their best tourism seasons in years. and bp's also committed to america. we support nearly 250,000 jobs and invest more here than anywhere else. we're working to fuel america for generations to come. our commitment has never been stronger.
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. as we honor our troops i'm joined by a navy veteran who made the transition from war to wall street. cal quinn was injured while serving with special forces in afghanistan. he went through the wall street war fighters rehabilitative program after his return home. here now is cal quinn and is now the cfo of drexel hamilton. an institutional broker dealer that founded wall street war fighters. thank you very much for your service and for what -- for your service on behalf of the nation and your service on behalf of the veterans right now. i read -- >> thank you, sir. >> i read that 20%, 20% unemployment rate, for returning
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disabled veterans. >> a cornell study. cornell study done beginning of the year said 41% and potentially underestimation. 41% of services disabled veterans unemployed. >> and then there is another stat that one in four vets have returned home disabled. historical rate important prior american war is only 13%. so this -- 25% which seems to put even more pressure to help you do what you have been doing. >> that's right. and only 1% of our population, as you well know, are serving in combat. they served in -- combat fear more time than any other period in our modern military history. what are we doing to honor the men and women when they come back? they are being slapped in the face with unemployment rate several times their civilian counter parties. here's what we are looking to address. >> it would seem to me with the respect i have for the men and women in our armed forces that -- >> thank you. >> -- returning vets are -- have
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discipline. they know how to make decisions and stick to the mission. without it seem to me that you have -- a hard but easy sell, if employers would just listen to this, you would have an easier sell. >> yeah. i wish that were right. the problem is not the individual because the individual almost the to the man or woman want to help and it is a system. problem with the system is something we all suffer from. it is called human condition. what they don't have as a hiring manager is the pinpoint on the m map. a reference point that says i knew a disabled veteran and that veteran was able to achieve excellence. here's what our firm, that's what we are looking to bring to the market. we are looking to demonstrate as we partner a veteran with a veteran, industry veteran, that our firm and disabled veterans that work at our firm are capable of not just competence but excellence. that's important. that's a very important distinction. if we are able do that hopefully more get the opportunity to get hired. >> i just think it is fabulous
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thing you are doing. i see you have peter involved in this, former head of the joint chiefs. i think your firm should be commended for doing this. i don't know what to say. god bless. i mean, i just wish you all the luck in the world. anything i can do to ever help you make that pitch i would. i would in a nano second thank you so much. we are a work in progress. the number one challenge they have is that opportunity. getting that opportunity over the last several days as -- our country has endeavored to honor veterans and the families who is supported them, that's an important component, families and sacrifice the families make. what we need to be doing after we stand up and clap for vet have an we need to convert that sentiment of action. other organizations need to give firms like ours an opportunity the perfect form and demonstrate we are capable of excellence. and that needs to happen broadly across the -- industry. >> i hope so. i hope so. great stuff. thanks for coming on. leading republican immediate why baron, tells us why the gop was on the totally wrong side of
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immigration and economic growth and that's why they lost. by the way, might lose texas, too. the next time. that's next up on "kudlow." bob, these projections... they're... optimistic. productivity up, costs down, time to market reduced... those are good things. upstairs, they will see fantasy. not fantasy... logistics. ups came in, analyzed our supply chain, inventory systems... ups? ups. not fantasy? who would have thought? i did.
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we did, bob. we did. got it. on gasoline. i am probably going to the gas station about once a month. last time i was at a gas station was about...i would say... two months ago. i very rarely put gas in my chevy volt. i go to the gas station such a small amount that i forget how to put gas in my car. [ male announcer ] and it's not just these owners giving the volt high praise. volt received the j.d. power and associates appeal award two years in a row. ♪
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welcome back. misbegotten hard-line stance was the key reason for mitt romney's defeat. unless the republican party has a radical change on immigration policy, they may never be another republican presidential win in my lifetime. ing in fact, even the reddest of
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states like texas could turn blue according to senator-elect ted cruz. another nail in the gop coffin. joining us to talk about all of this, republican media baron christopher ready. president and ceo, chris, great to see you. i want to start, if you don't mind, start on the immigration blunder which romney made -- right at the beginning and i know you were all over this. and -- it seems to me if would don't figure out something, path to citizenship, different rhetoric, different selling points, more outreach, gops will be dead in the water for as far as the eye can see. >> we face a demographic time bomb. we already are seeing it in this election. and i think with ted the article in "the new yorker" you mentioned, where he was quoted the years ahead will be very ominous for republicans unless we change. i think this election may turn out to be a good thing in the sense we are going to do a course correction in the gop.
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be a lot more open, and be more positive reaching out to those middle voters. >> if people call a path to citizenship, then what i think of a path to citizenship, you know, you get your worker document, okay, register properly, and you got to learn english and something about american history and so forth and so on. but -- people call a path to citizenship amnesty, chris, i'm in favor of amnesty then. i'm tired of this whole debate. i'm tired of this semantics and tired of handful of people, you and i both know, who they are. who have held this issue up for so long. >> i do think that we don't want an immediate citizenship for 10 million undocumented illegal aliens in the country. when people talk about a path to citizenship, i favor that which manassas over a period of time it could be ten years. >> right. >> they could eventually get citizenship and pay taxes and they have a clean record. but what you want to do is give them immediate residence status. give them legal status and put
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them on the tax roles. we now have 10 million people in the country that are working our -- paying taxes, using social services, educational system. i'm cool with that. i want them to pay for it. i think that's the argument conservatives should make. we want those people to be part of the system. >> i like that. like that very much. you know, it is interesting. you were talking -- we are talking about proposals that were made by president george w. bush. john mccain, jon kyl, i had senator kyl on the radio show thing weekend. this is something he support ad long time. others supported this. mitt romney wouldn't go near and it paid the price for it. >> i don't understand what mitt romney was doing because i don't think mitt romney was that conservative on these issues. i spoke to him on the immigration issue in january. i told him that he would immediate to reach out and seemed very open to ideas in this private conversation that we had. and then i saw the republican platform in tampa which was awful. it called for self deportation
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which is impractical and also immortal to uproot 10 million people and their families. we can't do that. and i think we immediate to outreach and the idea that i think some people have that this was a base election, the base was already energized. he didn't immediate to go to the far right on issues. he needed to talk about the jack kemp conservativeism and ronald reagan and larry kudlow conservatism of economic growth of prosperity of bringing people in. reagan that did the big apple nesty in 1988. >> exactly. '86. >> i stand correct. >> we didn't call it amnesty. everybody knew what it was. basically the idea was that, you know, would buy time and buy 20 years. you are not against border security. what do we do with the good folks here now? >> we need that. border security -- in a post-9/11 age, border security is the first priority. >> right. but after that, we immediate to deal with the situation. you know, the -- the so-called
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illegals, some people don't like calling them that, undocumented individuals, they struggle to get here. they want to be part of the system. they want to earn a living. i don't know if immigrants that come here, legal or illegal, that want to come and go on welfare. they want to work and become part of the system. they want to share in the great american dream. these are republican values. and -- the fact when you look at the exit polls, 70% of asians and others voted for obama. >> incredible some of the swing states, it was worse. the guy never had a chance to go back and look at the exit polls. swing states. you know, i'm behind you 100%. i'm glad to see you are writing and talking about this. i am doing the same. i hope a lot of people do. it is time for a huge change. it is part of our values of opportunity, of economic growth, and of inclusion. it really is the reagan/kemp model. >> thank you, larry. >> you were great to come on the show.
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that's it for tonight's show. as always, thanks for watching. i'm larry kudlow. i think this whole business of immigration reform is part and parcel of free market capitalism, provide opportunity. that's what these immigrants want. you can do it in a legal, positive way. ♪ [ female announcer ] today, it's not just about who lives in the white house, it's about who lives in the yellow house, the green, and the apartment house, too. today we not only honor the oval office, but we honor the cubicle, and the home office as well. because today it's about all of us. and no matter who you are, you're the commander-in-chief of your own life. ♪
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